The media is blaring at full blast about the number of jobs (not just IT) that could be lost in 2017 and beyond and how it could be "bigger" than 2008. Whether there is merit in such speculation remains to be seen. What should be clear to anyone working in a non-government establishment is that there is always some chance of a sudden loss of income. In this post, I discuss simple steps to prepare for and handle layoffs.
I am often asked this question. The catching up here refers to being able to create an adequate retirement corpus. The answer depends on the age of the person. For someone in the 30s (even late 30s), I think it is quite possible if they put their head down and invest enough for the next 15 years. This is part two of the Ugly Truth: How much should I invest for retirement?
Fifteen years is a lifetime when it comes to investing and with some luck and discipline, even a 40-year-old can make enough corpus to retire by 55 or so. Even by age 40, an exposure to 60% equity need not be risky. So it is not late at all. Only above age 45, the risk becomes too high even if the person has the appetite for it.
If we wish to build the financial well-being of our family, one of the first things to do is to protect it. With life insurance, in case the breadwinner(s) die; health insurance, in the case of a hospitalization; an emergency fund, to handle unexpected expenses; an accident insurance to cover of temporary or permanent loss of income due to accidents; invest right for inflation protection (or inflation insurance). There is one more form of protection that we often neglect to consider - action plan insurance. In this post, I discuss why it is crucial.
Two of my close family members had health scares in the last couple of months. One of them realised (by chance) there that communication between the heart and brain was faulty. The other had a cardiac arrest and was revived. In both situations, there was mention of a pacemaker - a device that sends electrical pulses to trigger normal heart motion. No emergency fund would be sufficient to handle such expenses! Is there a way we can handle the financial implications of such sudden developments better?
When it comes to money management, success can be measured in many ways. If it is personal finance, then it makes sense that the milestones be personal. Here are a few personal finance milestones that can help you gauge "where you stand today".
Before we begin, my book with PV Subramanyam, You Can Be Rich Too is available at a 50% discount (Rs. 198) for short periods of time this month as it was among the top 25 bestsellers in the last 3 months. Grab it now! Thank you for your support. The book reached the top of three sub-categories and the top 156th across all categories (see image below). May not sound like much, but not all authors are lucky to enjoy the trust and support from readers.